While the value of cryptocurrencies has fallen dramatically due to the recent crypto bear market, the future for digital asset owners is not entirely bleak. A crypto bear market can be a lucrative opportunity for investors to capitalize on their holdings through crypto staking.
MATIC staking can be a phenomenal way to generate passive income on idle MATIC without having to sell. To earn interest, all you have to do is deposit MATIC for a set period of time. Although staking comes with a risk of loss, when done right, it can be a fantastic source of passive income. The following discussion will explore the easiest ways to stake MATIC and discuss whether you should.
The easiest way to stake MATIC TLDR:
Multichain crypto wallet Omni is the easiest way to stake MATIC; However, other notable methods include Lido and the use of centralized exchanges like Binance. You can also use Lido from the Omni app. Centralized exchanges take a portion of your rewards, so Omni is the easiest approach to get the most out of MATIC staking.
What is MATIC staking?
Before diving into MATIC staking, it’s important to understand how Polygon (MATIC) works. Polygon is a framework for building scaling solutions for Ethereum and Ethereum-compatible blockchain networks. It was designed to increase the flexibility and scalability of a blockchain project while leveraging the interoperability, security, and structural advantages of the Ethereum blockchain.
The Polygon network is a Proof of Stake (PoS) sidechain. PoS is a type of cryptocurrency consensus mechanism responsible for processing transactions and creating new blocks on a blockchain. In a PoS model, validators commit capital in the form of MATIC to help keep the network secure and earn rewards in return for their committed capital. If a validator acts dishonestly or negligently, the inserted MATIC serves as security that can be lost.
The validator is responsible for ensuring that newly created blocks are validly propagated throughout the network, and for occasionally producing and propagating new blocks. In other words, validators and the MATIC they employ play a significant role in the health and longevity of the Polygon network.
The easiest way to use MATIC
You have a wide range of options for staking MATIC. The option you choose largely depends on how much MATIC you are willing to deploy and whether or not you decide to go with a centralized or decentralized platform.
Staking via Omni Crypto Wallet
The easiest way to stake your MATIC is via Omni – an easy-to-use, highly functional and self-managed mobile Web3 wallet. The software has an easy-to-use interface that allows users to quickly access all of its features. The account setup process is easy and can be completed in minutes. Once your account is set up, all you have to do is tap three times to start staking MATIC and other cryptos. With a central focus on ease of use, Omni offers the fastest staking speed not only for MATIC but also for other major tokens such as ETH, SOL, and BNB.
The mobile application allows users to perform bridges, token swaps and staking. Users can quickly earn up to 6.3% APR (at the time of writing) on MATIC after registering an account. Regular staking, liquid staking, or yield vaults are the three different options Omni offers to earn MATIC incentives. In addition, Omni offers users the choice to use more than 20 alternative blockchains, with staking functionality offered for several coins other than MATIC.
Omni’s support for fluid staking further adds to MATIC’s ease of staking on the platform. It allows users to earn interest on MATIC while keeping their assets liquid, which is beneficial for several reasons. It lowers sign-up costs as liquid staking allows users to wager any amount, making Omni inclusive for all. It allows users to engage in yield farming, where users can choose to simultaneously earn income through other decentralized (DeFi) lending strategies.
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How Much Do You Earn Staking From MATIC?
The amount you can earn from staking MATIC varies. MATIC staking rewards are awarded based on how much MATIC is validated and what rewards the network is offering over the period. When little MATIC is employed, the log rewards are greater as an incentive for more MATIC to get online. Conversely, if an increasing amount of MATIC is staked, the reward will be reduced.
As of December 2022, about 33% of current MATIC supply is staked, yielding an APR of 5.3%. Find out about the current MATIC bet amount and the current annual percentage rate before you decide to bet.
Omni Matic prize pool
Omni launches Staking Sweepstakes – a chance for users staking MATIC through the app to earn raffle tickets and a chance to win the grand prize. On January 8th, Omni will randomly select three participants to split the prize pool of $10,000 worth of MATIC tokens. Users have a unique opportunity to win a significant amount of MATIC as well as have one of the easiest MATIC staking experiences on the market.
The first MATIC giveaway pool runs from December 19th at 7:00pm EST through January 8th. It’s very easy to enter the competition. Users using their MATIC via Omni can enter the Sweepstakes in less than a minute, with alternative entry methods also available (see Official Rules for more information).
For every 1 MATIC wagered, users will receive 1 entry into the prize pool draw. Three randomly selected winners will be selected on January 8th. The Grand Prize winner receives 70% of the total prize money, while second and third place winners receive 20% and 10% of the pool, respectively.
Centralized Exchanges
Several centralized exchanges (CEXs) offer staking support for MATIC such as Binance, KuCoin and Crypto.com. CEXs are perfect for users who are uncomfortable with keeping MATIC in their wallet, allowing users to generate income from MATIC with minimal responsibility or oversight.
Despite the convenience, a major disadvantage of using CEXs is that centralized providers consolidate pools of MATIC to run large numbers of validators. This practice is dangerous for users of the network as it creates a large centralized target and point of failure, making the network more vulnerable to attack or failure.
Lido Finance
Lido Finance is one of the world’s leading decentralized staking platforms with over $6 billion in total value (TVL) locked on the platform. The platform strives to make staking a hassle-free process while ensuring that users’ funds are productive and safe. Lido achieves this goal through its unique liquidity staking system. Currently, Lido offers an APR of 6.3% for MATIC staking.
Users can mint new tokens based on their staked MATIC on a one-to-one basis. These newly issued tokens follow the same pricing information and can be redeemed for the original token. Minted tokens are usually denoted with the “st” in front of their ticker symbol. The MATIC token will be awarded to investors using MATIC on Lido. Newly issued tokens can be used on decentralized finance (DeFi) platforms to generate multiple returns. You can deploy MATIC through the Lido website or just go through the Omni app.
Risks of staking MATIC
Staking out MATIC involves significant risks. It is important that you understand, assess and accept the risks involved before deciding to stake.
The potential loss of your seeded MATIC through slashing is a significant risk. Slashing is a protocol-level punishment associated with a network or validator failure. In other words, if a validator breaks the rules, the network destroys some of that validator’s coins.
Another major risk is not being able to sell your MATIC to make a profit or stop additional losses by the end of the lock-up period. However, by using Omni you can avoid this risk. Omni gives investors the opportunity to participate in liquid staking, a type of staking that allows you to earn rewards without giving up access to your funds.
Is MATIC worth staking?
Staking can be a great way to earn passive income on Idle MATIC while helping to secure the network, although not without risk. If you decide to participate in staking, using Omni is a good choice. It is compatible with a variety of software and hardware wallets such as Ledger. By downloading the application you can start earning over 6% APR on MATIC through regular staking, liquid staking or yield vaults.
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